Not Just Weathering the Storm: Early Tax Planning May Provide for a Brighter Tomorrow After Chapter 11

Daily Tax Report: State provides authoritative coverage of state and local tax developments across the 50 U.S. states and the District of Columbia, tracking legislative and regulatory updates,...

Debtors in bankruptcy proceedings will confront numerous state and local tax issues, but opportunities also arise to allow taxpayers to emerge from bankruptcy in a stronger state tax position. In this article, author Amy Mees discusses some of the state tax impacts of filing for reorganization under Chapter 11, the limitations on state and local tax authorities, and the interplay between state taxes and certain federal code provisions, such as cancellation of indebtedness income and the carryover of net operating losses.

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